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More hedge funds launched in the third quarter than liquidated for the first time since mid-2008, when the financial crisis began to accelerate, according to data provider Hedge Fund Research.

In addition, the group's HFRI Fund Weighted Composite Index returned to growth in November, after October's small decline snapped seven consecutive months of gains. The index rose 1.75%, pushing the year-to-date performance of that composite to just under 19%.

Yesterday, Hedge Fund Research said the third quarter's 224 new funds launched eclipsed the 190 funds that liquidated. Year to date, 554 funds have launched this year.

At this pace, 2009's number of new funds launched is set to exceed last year's, according to the research company.

"While 16% of all funds have closed in the last year, a new generation of funds has emerged into an investor environment dominated by structural and strategic considerations of liquidity, transparency, risk management and inflation protection," said Ken Heinz, president of Hedge Fund Research.

However, the number of new funds is still well below the average of 1,400 annually. And despite a drop in liquidations for the third quarter, fund liquidations for 2009 have already made the current calendar year the second highest on record for fund closures. The top year was 2008, when 1,471 funds closed.

Looking at fund strategies, equity hedging saw the most liquidations, while macro saw the most launches.